Shares are plummeting in the Asia Pacific this week as the coronavirus has been the latest scare across the world, starting with China. For America’s economy, there is a good and a bad side to the epidemic. Only time will give us the answers as to what happens daily within China’s economy in the outbreak of the new coronavirus.
The bright side of things for the American economy is, according to business and money experts, the jobs from China will be forced to move to America. Our already booming economy will only excel further. The downside is the only speculation that the new Trade Deal signed between the U.S. and China may have a whiplash effect on the tension between the two superpowers. Pressures are already high with the spread of the virus.
As death tolls and the spread of the virus continues to be on the rise, China is hurting all the way economically around. The death toll is now at 170 across the world, with an average growth of 38 new deaths within 24 hours.
Currently, around the globe, there are 7,711 people infected with the virus. Within 24-hours, there has been a rise of 1,737 new cases. There is about 99 percent of the deaths in China, but the numbers jumped from 14 to 16 countries added to the list of spreading overnight.
The most significant industries affected in China are tourism and traveling. To give a good idea of how everything has shut down, within Wuhan, there are over 50 million people trapped and quarantined. No one can leave, and no one can enter. Chinese authorities say the virus “can be transmitted by respiratory droplet transmission or by touch.”
All of the markets in China will remain closed until February 3 with the best-case scenario. If China cannot contain the virus, businesses, traveling, and tourism will stay closed for longer. The rest of the world, especially Asia, has seen a decline due to China’s productions.
Because of reasons such as the effects of the coronavirus, we can thank President Trump for making America reliable on its own sources rather than depending on other countries. It won’t hurt our economy half as bad as the rest of the world.
This is another reason to keep President Trump in office for the next four years. He has done a massive amount for our country within three years. Trump has put America back on top of the world. Imagine how great we will be after a second term with this excellent president.
As the virus continues to spread, the countries which have contracted the confirmed cases of the coronavirus, are seeing their economies slightly dip. Economists all agree the virus is the cause of China’s economic slump. The investors are handling their money more conservatively.
Citigroup said, “The wildcard is not the fatality rate, but how infectious the Wuhan virus is. The economic impact will depend on how successfully this outbreak is contained.”
Capital’s chief Asia economist Mark Williams, stated, “The outbreak is developing too rapidly to predict with any confidence the final extent of the economic damage.” He added, “But it is now certain that the outbreak will have a significant impact on China’s GDP this quarter.”
In comparison with the SARS outbreak, Williams stated, “Although China recovered quickly from Sars, the local economy was much stronger back in 2003 and was not facing the cyclical and structural headwinds posed by slowing population growth and industrialization.”
Another expert, Gerard Burg, senior international economist at the Australian Bank NAB, explained how there is very little information coming from China to predict the full effects of the virus on the economy. He said, “There would be a big flow-on effect outside China, especially in south-east Asia because of the growing importance of Chinese tourism.”
Burg added, “Countries such as Thailand, which depends on China for around one-quarter of its 10 million annual tourists, “really jumps out” because Thailand may be hesitant about people traveling there from China and the Chinese, with many cities in lockdown, would not be able to travel. South-east Asia already felt the big brunt of the US trade war, so there is potential for a negative impact.”
Viet Nguyen, a senior researcher, stated how containing the virus is essential and summed up the worst-case scenario by saying, “If it spreads from Hubei into the manufacturing hubs on the east coast and south-east coast then there may be more of a problem.”